Full Next-Gen Xbox Reportedly Set for 2027, Xbox-Branded Gaming Handheld Due Out Later in 2025

A new report reveals Microsoft's ambitious video game hardware plans: a next-generation Xbox console slated for 2027 and an Xbox-branded handheld gaming device expected later in 2025.

Windows Central reported on a partner PC gaming handheld, codenamed "Keenan," targeting a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, aiming for a two-year launch.

While Microsoft remains silent on the report, executive comments hint at these plans. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about combining Xbox and Windows experiences for PC gaming handhelds developed by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Microsoft's Phil Spencer previously indicated was further off.

The next-gen Xbox, reportedly greenlit by CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This console, alongside a first-party Xbox handheld and new controllers, is expected to complete Microsoft's 2027 console lineup. This suggests no direct successor to the Xbox Series S is planned, potentially positioning the handheld to fill that market segment.

Windows Central anticipates the next-gen Xbox will be more PC-like than previous iterations, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, alongside continued backward compatibility.

Last year, Xbox president Sarah Bond confirmed Microsoft's focus on "delivering the biggest technological leap ever in a generation" with its next-generation hardware.

The future of consoles is uncertain. The Xbox Series X and S are reportedly struggling in the market, and Sony suggests the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo is preparing the Switch 2, concerns remain about the traditional console market's viability.

Spencer has noted the lack of significant console market growth in recent years, citing a large but stagnant customer base focused on a few major titles. Last year, former Xbox executive Peter Moore hinted at internal discussions regarding the console's future.

This latest report suggests Microsoft's decision: the console market remains a key area of investment for the company.